Industrials sector comment – July 2013

Dato

Clearwater’s Industrial Team is delighted to announce our latest two transactions in the industrials sector.

Rimor Ltd, a leading provider of precision manufacturing and engineering services predominantly to the subsea oil and gas sector, has been acquired by the management team. The business, which is headquartered in Hampshire and employs more than 120 people, provides complex and highly engineered manufacturing solutions to global high-technology subsea equipment manufacturers. The company’s integrated service offering includes precision engineering, assembly, fabrication and testing. Rimor’s immediate objective is to focus on UK site expansion as well as potential growth overseas.

Our second recent transaction is the management buy-out of Angus Fire Ltd, a manufacturer of fire-fighting products including fire hoses, foam concentrates and fire fighting systems, as well as hoses for industrial applications including fracking for shale. The business has been formed via the acquisition of four international trading divisions of Connecticut-based United Technology Corporation: Angus Fire Products, Angus Fire Engineering, National Foam (US) and Eau et Feu (France). Angus Fire employs 250 people and has sales revenue of £95m. The management team, who were advised by Clearwater, will now focus on capitalising on growing global demand for its products within the oil and gas sector.

Mid-market private equity firm LDC has backed both transactions which is demonstrative of the high level of interest private equity is taking in the oil and gas sector at present.

Deals

Rotork plc has acquired Flowco Ltd, a valve and actuator service company based near Rotork’s group headquarters in Bath, UK. The acquisition will further enhance Rotork’s service offering in the south of the UK.

Zodiac Aerospace SA has acquired the engineering department of Threesixty Aerospace Ltd, a wholly-owned subsidiary of Virgin Atlantic Airways, engaged in the conception, design and manufacture of seats for Virgin planes. The acquisition was made through Zodiac’s UK subsidiary Zodiac Seats UK Ltd which Zodiac acquired via last year’s purchase of Contour Aerospace Ltd.

Egbert H Taylor & Company Ltd has acquired Sellers Engineering Ltd, an Oldham-based container manufacturer. The acquisition brings together two renowned waste industry brands with a complementary product portfolio.

Global alternative asset manager Carlyle Investment Management LLC has acquired Chesapeake Ltd, a global supplier of value-added paper-based packaging products and services. The transaction provides an exit for Irving Place Capital LP and Oaktree Capital Management LP.

John Wood Group plc has acquired Pyeroy Group Limited, a provider of specialist coatings, access and fabric maintenance services to the oil & gas, marine and rail industries. Pyreroy’s complementary range of services extends Wood Group PSN’s existing range of offshore brownfield engineering & construction, operations & maintenance and decommissioning services.

Oil NRG Ltd has acquired GB Fuels, a fuel business and a division of the family run Goodall Bates & Todd Ltd. The GB Lubricants division of the group is unaffected by the deal and Goodall Bates & Todd will now focus further growth on this business.

Seven Technologies Ltd, with the support of YFM Equity Partners Ltd, has acquired Datong plc, a provider of a range of advanced high performance covert intelligence gathering solutions, supplying defence, homeland security and law enforcement agencies around the world. The acquisition will create one of the sector’s largest independent specialist technology engineering businesses.

A management buyout team backed by private equity firm LDC has acquired Angus Fire Ltd, manufacturer of fire-fighting products. Having the backing of LDC means that Angus Fire can look to capitalise on growing global demand for its products within the oil and gas sector.

Private investor and entrepreneur Roger Williams has acquired Seychell Engineering & Fabrication Ltd, a UK-based engineering sub-contracting company, from founders Lawrence and Caroline Seychell. Williams plans to invest in additional machinery and improved systems and look to rebrand the business with a view to targeting new customers.

Judges Scientific plc has acquired Scientifica Ltd, a specialist manufacturer of electrophysiology equipment for £12m cash and an earn-out capped at £1m. The acquisition is Judges Scientific’s largest to date and is expected to be earnings enhancing with immediate effect.

SPTS Technologies Ltd has acquired XACTIX Inc, a Pittsburg-based provider of xenon difluoride (XeF2)-based release etch technology. By adding the XACTIX product line to its HF vapour phase release offering, SPTS now supports release technologies for silicon/molybdenum/germanium and silicon oxide sacrificial layers.

Emerson Electric Company has acquired Groveley Detection Ltd, an innovator and developer of ultrasonic gas leak detection solutions for both onshore and offshore oil and gas installations. The transaction significantly strengthens Emerson’s position in the global safety monitoring market.

Proserv Ltd has acquired Velocious Pty Ltd, an Australian pioneering subsea engineering firm. Proserv is pursuing growth in its core oil and gas technology and services business and this transaction will strengthen their global position in the subsea sector.

BMT Group Ltd has acquired Verweij & Hoebee Groep, a Dutch marine survey and consulting engineering company. The transaction will enable Verweij & Hoebee to benefit from the many facilities within the larger BMT Group whilst allowing the company to remain a smaller specialist company serving a niche market in Europe.

GP Strategies Corporation has acquired Lorien Engineering Solutions Ltd, a UK provider of engineering design and project management services with specific expertise in the food & beverage, manufacturing and life sciences industries. GP Strategies can now provide further value to LES clients by offering services including technical documentation, reliability and maintenance, operational excellence, training needs analysis, and training design, development and delivery.

A management buy-in backed by FrontRow Energy Partners Ltd, Maven Capital Partners UK LLP and Simmons Parallel Energy LP, has acquired HCS Control Systems Ltd, a Scottish engineering firm based in Glenrothes. The new management team led by Brett Lestrange plans to open an Aberdeen base to be at the heart of the oil and gas supply chain, whilst retaining its manufacturing capabilities in Fife.

Abbot Fire Group Ltd has merged with SSpecialist Fire Products Ltd, both companies involved in fire prevention and safety services. The team from Specialist Fire Products has moved in to Abbot Fire Group’s premises in Gawcott. Buckingham.

Foster Wheeler AG has acquired UK-based Ingen Ideas Ltd, a privately held Aberdeen-based upstream consultancy company, specialised in field development and project decision support. Ingen will become part of Foster Wheeler’s EMEA Upstream operations, which already has operations in Woking, Reading, Glasgow and Hull.

Ultra Electronics Holdings plc has acquired Varisys Ltd, a designer and manufacturer of products for high performance embedded computing applications for customers operating in the aerospace, defence, telecommunications and industrial sectors. The acquisition will give Ultra an organic capability in this specialist niche area.

A management buyout backed by private equity firm LDC has acquired Rimor Ltd, a provider of precision manufacturing and engineering services predominantly to the subsea oil & gas industry. The deal will provide the capital required to help support the continuing growth and expansion of Rimor, including site expansion in the UK and potential expansion overseas.

MB Aerospace Holdings Ltd has acquired Delta Industries Inc, a US-based aero-engine component manufacturer. The transaction, which follows the recent MBO of MB Aerospace in March this year, will expand the business to projected revenues of more than £100m and to 550 employees for the 2013 financial year.